Poor understanding of insurance dragging back sector

Customer experience is shaping the growth of the insurance sector. [Stockphoto]

Insurance is a vital tool that not only plays a major role in protecting businesses, homes, lives, health and assets against risks, but also provides peace of mind knowing that in case of any disaster, accident or even sickness, you are financially covered. Uptake of insurance products like health, motor vehicle, life, travel and property insurance among others, have for a long period remained relatively low in Kenya, especially among the medium to low-income earners.

According to the 2020 Financial Stability report by the Central Bank of Kenya (CBK), insurance penetration in Kenya stands at 2.4 per cent below the global average of 7.2 per cent. The low penetration level according to the Association of Kenya Insurers is majorly attributed to a lack of knowledge or poor understanding of insurance and perception of the high cost of insurance.